Fiscal Policy Assignment Example | Topics and Well Written Essays - 250 words

Fiscal Policy - Assignment ExampleThe financial policy has been instituted to see the government earn more revenue which is to be used to lessen the government debt which has been rising over the years especially following the release of stimulus packages to revive the economy after the financial crisis began. The fiscal policy soon in place disfavours the rich as it would see them correct more taxes. The middle class are also disfavoured by the fact that they have to pay 2% higher payroll tax than they have previously been paying. If not for the easy monetary policy that the country has adopted, many sectors of the economy would have been grossly affected by the financial policy and the unemployment levels would remain high. Generally, the fiscal policy will benefit those to whom the government is indebted.The Taiwan Government on has adopted an expansionary fiscal policy for the last seven years (Liu, 2013 weebly.com 2014). The policy includes raising spending on defence each y ear by 7.8%. The policy is aimed at bear upon domestic demand (weebly.com 2014). This measure has been taken in response to volatile exports. The government intends to invest in infrastructure and hopes that the economic growth will be more impressive. The policy favours local businesses and the general population although the governments level of debt will keep rising.Mutikani, L. (March 22, 2013). Easy Fed softens fiscal policy slug on economy. Chicago Tribute. Retrieved March 14, 2014 from http//articles.chicagotribune.com/2013-03-22/business/sns-rt-us-usa-economy-growthbre92l03o-20130321_1_easy-policy-monetary-policy-monetary-stimulusLiu, F. (2013).Taiwan Fiscal Policy to Stay Expansionary in 2014, With More for Infrastructure Outstanding Public Debt Likely to Rise nearly to the Statutory Limit. Wall Street Journal. Retrieved March 14, 2014